Gross profit=Sales-cost of goods sold.
This is the gross profit finding formula in ratio analysis.But i want to know the practical meaning of this formula.How sales minus cost of goods sold determine gross profit?
1 Replies
Umesh Rijal
(Internal Auditor)
(909 Points)
Replied 13 February 2014
Dear Kumar,
Gross proft means in business term the proft from core business activities means trading profit, so GP=Sales minus COGS refelects the profit for that activities.
Recent Topics
- While filing ITR 1 IN CASE let out property it is
- Regarding LTCG on property where payment is constr
- Tenant rent reflecting wrongly in AIS
- Is Godown construction ITC Eligiblility
- RCM on import service FY 17-18
- PF Registration (MCA)
- Tax RATE on Statues
- LTCG or STCG on sale of property
- RCM LORRY FREIGHT
- Indirect export query
Related Threads
Trending Online Classes
-
Live Course on EPF & ESI Act - Mastercourse(With Govt Certificate)
Mr.Balamurugan Ranganathan16 June 2025
CAclubindia
